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Hotels in London Feature Good Occupancy During Olympics
The new data from STR Global shows that the beginning of the Olympic Games in London was profitable for hotels in the capital of the UK. The occupancy stood at the level of 84.4% and average room rates went up to £224.72 (US$351.72).
London hotels are really busy during the games. Even though one may find free hotel rooms in London hotels, mostly in the inn, the majority of hotels are in a very good position. Historically, Olympics are a bid challenge for host cities as they simply do not sell out. This trend can be seen during the past four summer Olympics. Starting from Atlanta in 1996, none of the host cities could overcome the occupancy of over 90%.
Even though there’s a definite rise in occupancy during the Olympic Games, this is not always good for hotels in the host city. When operating in their normal regime, hoteliers know the expected demand and so they are able to change their work depending on it. Such a large international event as Olympics makes it really hard to make any predictions or try to control the business.
This year’s June and July were not very successful for hotels in London as their revenues were lower than in the same period of 2011. The average occupancy for June 2012 was around 85%.
The beginning of the Olympic period helped to increase average occupancy. In some hotels the occupancy was 94.9% (Docklands and Greenwich) and 89.0% (the West End) during its peak level (29 July). Hotels located in Victoria, Knightsbridge and Pimlico feature the highest ADR for the period from the beginning of the games till the end of July. Here ADR was £399.20 (US$622.24), followed by hotels in the West End (£329.27 or US$513.24).
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